Definition: Industrial relations is that field of study which analyzes the relationship among the management and the employees of an organization at the workplace and also provides a mechanism to settle down the various industrial disputes. This concept evolved in the late 19th century because of the industrial revolutions.
It
is made up of the following two terms:
‘Industry
‘can be viewed as an economic activity (i.e., manufacturing, producing or
processing of goods or services) which is performed by a group of individuals.
‘Relations ‘here refers to the connection and communication which pertains between the employer and the employees within a workplace.
Factors Affecting Industrial
Relations
Industrial relations deals with human behavior and management of personnel in an organizational setup. The various factors that influence the relationship between the administration and the employees in an organization are as follows:
Individual Behavior
Every
person has a different perception, background, skills, knowledge, experience
and achievements which influences an individual’s behaviour. The employees,
therefore, behave differently in different situations, thus impacting the work
environment in the organization.
Organizational Structure
The hierarchical structure creates more formal relationships among the employees belonging to different hierarchical levels in an organization. Also, the delegation and execution of decision-making power by the superior influences the industrial relations between the managers and the employees.
Psychological Factors
An employee’s attitude and mentality towards the employer and the given task; and the employer’s psychology towards the workers can be positive or negative, which ultimately impacts the employee-employer relationship.
Leadership Style
Every manager possesses certain leadership traits and different style to function even in a formal organization. Through his/her formal or informal ways of generating team spirit and motivating the employees, he/she impacts the organization’s industrial relations.
Economic and Technical Environment
To cope up with the changes in the economic conditions or technology, organizations need to restructure the task of the employees including their work duration, conditions and wages; which leads to a difference in their behavior, attitude, adapting spirit, etc. towards the organization and its people.
Legal and Political Environment
The legal framework and political circumstances influence the organization and its industrial relations. It contributes to the framing of rules, rights, authority, powers, roles and responsibilities of all the parties of the organization.